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American Software Reports Preliminary Third Quarter of Fiscal Year 2013 Results

ATLANTA --(Business Wire)--

American Software, Inc. (NASDAQ: AMSWA) today reported preliminary
financial results for the third quarter of fiscal 2013. The Company has
achieved 48 consecutive quarters of profitability and has distributed
dividends to shareholders for 38 consecutive quarters.

Key third quarter financial highlights:

Total revenues for the quarter ended January 31, 2013 were $23.1
million, a decrease of 9% over the comparable period last year.

Software license fee revenues for the quarter ended January 31, 2013
were $4.9 million, a decrease of 28% over the same period last year.

Services and other revenues for the quarter ended January 31, 2013
were $9.6 million compared to $10.3 million for the same period last
year, a decrease of 7%.

Maintenance revenues for the quarter ended January 31, 2013 were $8.6
million compared to $8.3 million, an increase of 3% over the same
period last year.

Operating earnings for the quarter ended January 31, 2013 were $2.3
million, a decrease of 30% compared to the same period last year.

GAAP net earnings for the quarter ended January 31, 2013 were $2.1
million or $0.08 per fully diluted share, a decrease of 17% over the
same period last year.

Adjusted net earnings for the quarter ended January 31, 2013, which
excludes stock-based compensation expense and amortization of
acquisition-related intangibles, were $2.5 million or $0.09 per fully
diluted share compared to $2.9 million or $0.11 per fully diluted
share for the same period last year, which also excluded stock-based
compensation expense and amortization of acquisition-related
intangibles.

Adjusted EBITDA was $3.7 million in the quarter ended January 31, 2013
compared to $4.7 million in the quarter ended January 31, 2012.
Adjusted EBITDA represents GAAP net earnings adjusted for amortization
of intangibles, depreciation, interest income, income tax expense,
stock-based compensation, and other significant non-routine operating
and non-operating income and expense items, if applicable.

Key fiscal 2013 year to date financial highlights:

Total revenues for the nine months ended January 31, 2013 were $75.3
million, a 1% increase over the comparable period last year.

Software license fees for the nine-month period were $15.5 million, a
24% decrease compared to the same period last year.

Services and other revenues were $34.4 million, a 14% increase
compared to the same period last year.

Maintenance revenues were $25.4 million, a 5% increase over the
comparable period last year.

For the nine months ended January 31, 2013, the Company reported
operating earnings of approximately $10.2 million, a 12% decrease over
the same period last year.

GAAP net earnings were approximately $7.3 million or $0.27 per fully
diluted share for the nine months ended January 31, 2013, a 7%
decrease compared to $7.9 million or $0.29 per fully diluted share for
the same period last year.

Adjusted net earnings for the nine months ended January 31, 2013,
which excludes stock-based compensation expenses and
acquisition-related amortization of intangibles, were $8.3 million or
$0.30 per fully diluted share, compared to $8.7 million or $0.32 per
fully diluted share for the same period last year, which also excluded
stock-based compensation expenses and acquisition-related amortization
of intangibles.

Adjusted EBITDA decreased 8% to $14.5 million for the nine months
ended January 31, 2013, from $15.8 million for the nine months ended
January 31, 2012. Adjusted EBITDA represents GAAP net earnings
adjusted for amortization of intangibles, depreciation, interest
income, income tax expense, stock-based compensation, and other
significant non-routine operating and non-operating income and expense
items, if applicable.

The Company is including EBITDA, adjusted EBITDA, adjusted net earnings
and adjusted net earnings per share in the summary financial information
provided with this press release as supplemental information relating to
its operating results. This financial information is not in accordance
with, or an alternative for, GAAP-compliant financial information and
may be different from non-GAAP net earnings and non-GAAP per share
measures used by other companies. The Company believes that this
presentation of adjusted net earnings and adjusted net earnings per
share provides useful information to investors regarding certain
additional financial and business trends relating to its financial
condition and results of operations.

The overall financial condition of the Company remains strong, with no
debt and with cash and investments of approximately $57.6 million as of
January 31, 2013. During the third quarter, the Company paid
approximately $10.6 million in dividends and repurchased 65,000 shares
of its common stock at an average cost of $7.77 per share. The
authorized stock repurchase program has a remaining balance of 1,090,138
shares.

"The economic headwinds continued during the third quarter and created
hesitation in the market for investment in supply chain software,"
stated James C. Edenfield, president and CEO of American Software. "We
remain optimistic that more of our prospective customers will prioritize
their supply chain improvement initiatives and accelerate their
investment in software solutions. In the interim, we expect to continue
our aggressive investments in research and development and expanding our
sales coverage. We also expect to continue delivering strong
profitability and positive cash flow."

"To succeed in today's global economy which is shaped by uncertain
demand and rapid market changes, companies must be able to increase
visibility, forecast accurately and synchronize supply with demand while
adapting to market changes," continued Edenfield. "Today, the supply
chain is seen as a key enabler of visibility and flexibility. Many
businesses leaders have been able to replace expensive inventory with
better information from our portfolio of supply chain technology to
accelerate the sales and operations planning (S&OP) process, streamline
new product introductions, optimize inventory investments and harness
the benefits of a global marketplace to increase profits. Both our
Demand Solutions® and Logility Voyager Solutions™ brands
offer innovative, proven solutions to help companies address these
challenges during both prosperous and lean economic environments."

During the quarter, software license agreements were signed with
customers located in the following 14 countries: Australia, Canada,
Colombia, Finland, France, Germany, India, Italy, Japan, the
Netherlands, Norway, Sweden, the United Arab Emirates and the United
States.

Logility, a wholly-owned subsidiary of the Company, announced
Peninsula Beverages, a bottler and distributor of Coca-Cola products
in South Africa, achieved impressive results following its
implementation of Logility Voyager Solutions™. Through the use of
Logility's advanced supply chain management software, the company
increased forecast accuracy by 20 percent at the item/plant level and
is able to utilize the enhanced visibility and more accurate data to
strengthen its sales and operations planning (S&OP) process.

Logility revealed the winner of the 2012 Sailing to New Heights Award,
presented at the company's customer conference in New Orleans. This
year KGP Logistics, one of the country's largest single-source
value-added suppliers of supply chain services, communications
equipment and integrated solutions to the telecommunications industry,
was recognized for its innovative use of Logility Voyager Solutions to
improve its operations. Previous winners include Verizon Wireless,
Sigma Aldrich, and Intertape Polymer Group.

Johnstone Supply, the leading cooperative wholesale distributor in the
HVACR industry with more than $1.3 billion in annual sales, and
Logility presented the educational webcast, "Game Plan: Supply
Chain Collaboration for Wholesale Distribution." The live event
explored the keys to developing a successful supply chain
collaboration game plan.

NGC Software, a wholly-owned subsidiary of the Company, announced
STEPS Inc., a non-profit organization that employs individuals with
disabilities to manufacture uniforms and military apparel, upgraded to
the latest version of NGC's Shop Floor Control software. STEPS now has
the ability to improve operational efficiency and increase production
output through enhanced reporting capabilities, improved resource
planning and elimination of bottlenecks-all in the latest version of
NGC's software.

During the quarter, NGC Software announced Tibi, the New York-based
fashion brand founded by designer Amy Smilovic, has implemented NGC's
PLM and ERP systems. Tibi's designer collection is sold at over 600
retailers worldwide, including Net-a-Porter, Shopbop, Saks Fifth
Avenue, Neiman Marcus and Harvey Nichols. Tibi selected NGC's fashion
PLM and apparel ERP software to support the popular brand's rapid
growth.

Company & Technology

Logility announced two of its executives, Sean Willems, Ph.D., chief
scientist at Logility and associate professor of Operations and
Technology Management, Boston University School of Management, and
John Ruark, Ph.D., vice president, Inventory Optimization, Logility,
were named finalists for the 2012 Daniel H. Wagner Prize for
Excellence in Operations Research Practice presented by the Institute
for Operations Research and the Management Sciences (INFORMS).

Aberdeen Group and Logility presented an educational webcast during
the quarter entitled "Streamlining the S&OP Process." The
live event presented Aberdeen Group's latest sales and operations
planning (S&OP) research and featured speakers Bryan Ball, vice
president and principal analyst, supply chain management, Aberdeen
Group, and Karin Bursa, vice president, Logility.

Food Logistics magazine recognized Logility and its wholly-owned
subsidiary, Demand Management to the publication's list of Top 100
Technology Providers. Logility Voyager Solutions and Demand Solutions
were highlighted for driving enhanced, end-to-end supply chain
visibility and helping food and beverage companies boost supply chain
efficiency. More than 165 companies submitted applications to be
considered as a top technology provider to the food and beverage
industries.

Demand Management announced that the 2013 DSCOVER Conference will be
held at the Hard Rock Hotel at Universal Studios in Orlando, FL
September 15 to 17. The Demand Solutions customer conference will
bring together supply chain thought leaders and practitioners to
explore best practices and technology to drive business value.

During the quarter, Demand Management partnered with Italian IT firms
Square Reply, Sedoc and Key Team to expand the availability and
support for the Demand Solutions suites in the European market.

NGC Software announced the company earned three top 10 rankings in the
2012 RIS News Software Leaderboard, widely regarded as the retail
industry's most prestigious guide to the top retail technology
software companies. In its 12th year, the RIS News Software
LeaderBoard is based entirely on retailer evaluations and ranks
technology vendors based on customer satisfaction across a wide range
of criteria.

This press release contains forward-looking statements that are subject
to substantial risks and uncertainties. There are a number of factors
that could cause actual results to differ materially from those
anticipated by statements made herein. These factors include, but are
not limited to, continuing U.S. and global economic uncertainty, the
timing and degree of business recovery, unpredictability and the
irregular pattern of future revenues, dependence on particular market
segments or customers, competitive pressures, delays, product liability
and warranty claims and other risks associated with new product
development, undetected software errors, market acceptance of the
Company's products, technological complexity, the challenges and risks
associated with integration of acquired product lines, companies and
services, as well as a number of other risk factors that could affect
the Company's future performance. For further information about risks
the Company could experience as well as other information, please refer
to the Company's current Form 10-K and other reports and documents
subsequently filed with the Securities and Exchange Commission. For more
information, contact: Vincent C. Klinges, Chief Financial Officer,
American Software, Inc., (404) 264-5477 or fax: (404) 237-8868.

Logility is a registered trademark and Logility Voyager Solutions is
a trademark of Logility, Inc., Demand Solutions is a registered
trademark of Demand Management, Inc., and NGC and New Generation
Computing are registered trademarks of New Generation Computing, Inc..
Other products mentioned in this document are registered, trademarked or
service marked by their respective owners.

(1) - Basic per share amounts are the same for Class A and Class B
shares. Diluted per share amounts for Class A shares are shown
above. Diluted per share for Class B shares under the two-class
method are $0.08 and $0.27 for the three and nine months ended
January 31, 2013, respectively. Diluted per share for Class B shares
under the two-class method are $0.10 and $0.30 for the three and
nine months ended January 31, 2012, respectively.

(2) - Tax affected using the effective tax rate for the three and
nine months period ended January 31, 2013 and 2012.